Work and Wage Dynamics around Childbirth

TY - JOUR

T1 - Work and Wage Dynamics around Childbirth

AU - Ejrnæs, Mette

AU - Kunze, Astrid

N1 - JEL Classification: C23;J24;J31

PY - 2013/7

Y1 - 2013/7

N2 - In this paper, we investigate how the wage processes of women who are well established in the labour market are affected by having children. We estimate a flexible fixed-effects wage regression model extended by post-childbirth fixed effects. We use register data on West Germany, and we exploit the expansionary family policy during the late 1980s and 1990s for identification. On their return to work after childbirth, the wages of mothers drop by 3-5.7 per cent per year of leave. We find negative selection back to full-time work after childbirth. We discuss the policy implications regarding statistical discrimination and the results concerning the family gap.

AB - In this paper, we investigate how the wage processes of women who are well established in the labour market are affected by having children. We estimate a flexible fixed-effects wage regression model extended by post-childbirth fixed effects. We use register data on West Germany, and we exploit the expansionary family policy during the late 1980s and 1990s for identification. On their return to work after childbirth, the wages of mothers drop by 3-5.7 per cent per year of leave. We find negative selection back to full-time work after childbirth. We discuss the policy implications regarding statistical discrimination and the results concerning the family gap.

KW - Faculty of Social Sciences

KW - Control function

KW - human capital

KW - parental leave

KW - wages

U2 - 10.1111/sjoe.12025

DO - 10.1111/sjoe.12025

M3 - Journal article

SN - 0347-0520

VL - 115

SP - 856

EP - 877

JO - Scandinavian Journal of Economics

JF - Scandinavian Journal of Economics

IS - 3

ER -